Understanding Credit Card Fees for Stayntouch Pay Powered by Adyen

Modified on: Fri, 31 Jan, 2025 at 12:29 PM

Applies to:          Stayntouch PMS          

Understanding Credit Card Fees for Stayntouch Pay Powered by Adyen


TABLE OF CONTENTS


This article reviews the components of credit card fees, including interchange, scheme fees, and markups, so you can better manage your payment processing costs with Stayntouch Pay.

1. What Are Credit Card Fees?


Credit card fees are the costs associated with processing credit card payments. These fees are charged by various entities involved in the payment process, including the card networks, banks, and payment processors.In the case of Stayntouch Pay, these fees are seamlessly managed through Adyen, ensuring transparency and efficiency in payment processing.

2. Components of Credit Card Fees


Credit card fees consist of three main components:

A. Interchange Fees

  • What is Interchange? Every time a transaction is made via a card scheme (Visa, Mastercard, etc.), the acquirer pays the cardholder’s bank an interchange fee. The business then pays the interchange fee back as part of its card processing fees.
  • How is it Determined? Interchange fees are set by card networks (e.g., Visa, Mastercard) and vary based on:
    • Card type (e.g., debit, credit, business card).
    • Merchant's industry.
    • Transaction details (e.g., domestic or cross-border).
  • Dynamic Nature of Interchange Fees: Interchange fees are not fixed and may change periodically based on regulations or updates from the card networks. This fee makes up the most significant part of card processing fees.

B. Scheme Fees

  • What Are Scheme Fees? Scheme fees are charged by the card networks (e.g., Visa, Mastercard, American Express) to facilitate the payment process.
  • What Do They Cover? These fees cover costs like network maintenance, security improvements, and innovation in payment technologies.

C. Markup

  • What is a Markup? The markup is the additional fee charged by Adyen for processing payments on your behalf. This fee is transparent and covers Adyen's services, including reporting, fraud protection, and support.

3. Why Are Credit Card Fees Necessary?


Credit card fees are essential for maintaining a secure and efficient payment ecosystem. They enable:

  • Fraud prevention and risk mitigation.
  • Innovation in payment technologies.
  • Secure and reliable transaction processing.

4. Managing Credit Card Fees with Stayntouch Pay

A. Transparent Pricing


With Stayntouch Pay, powered by Adyen, you'll benefit from clear and predictable pricing. All fees, including interchange, scheme fees, and markups, are transparently displayed in your monthly statements and reports.

B. Optimized Processing


Adyen’s platform ensures that interchange fees are optimized by routing payments in the most efficient way possible, saving costs where applicable.

C. Access to Detailed Reports


Through the Stayntouch Pay Essentials Portal, you can view detailed reports on your transactions, including a breakdown of fees for each payment so you can track and reconcile them easily.

5. Factors Influencing Your Credit Card Fees


Several factors influence the total fees for processing a payment, particularly the interchange fees. Understanding how these fees are calculated can help you better anticipate costs.

A. How Interchange Fees Are Calculated


Interchange fees are determined by card networks (e.g., Visa, Mastercard, American Express) and are based on the following factors:


1. Card Type

  • Debit Cards: Typically have lower interchange fees compared to credit cards, as they involve less risk.
  • Credit Cards: Fees may vary depending on whether the card is a standard credit card, premium/rewards card, or a corporate/business card. Premium cards often have higher fees due to the additional benefits offered to cardholders.


2. Transaction Type

  • Card-Present Transactions: In-person payments (e.g., at a front desk or terminal) generally have lower interchange fees because they carry less risk of fraud.
  • Card-Not-Present Transactions: Online or over-the-phone payments typically have higher fees due to increased fraud risk.


3. Transaction Geography

  • Domestic Transactions: Payments made within the same country usually incur lower interchange fees.
  • Cross-Border Transactions: Payments made between different countries or currencies often have higher interchange fees, as they involve additional risks and currency conversion costs.


4. Merchant Industry (MCC Code)

  • Different industries are assigned Merchant Category Codes (MCCs), and interchange fees can vary depending on the perceived risk and transaction volume associated with that industry. For example, hospitality and travel industries may have different fee structures compared to retail or dining.


5. Transaction Amount

  • Interchange fees can be a combination of a fixed amount and a percentage of the transaction amount. Larger transactions will naturally incur higher total fees due to the percentage-based component.


6. Payment Method and Technology

  • Chip and PIN: Transactions using EMV technology (chip cards) are considered more secure and may have lower fees.
  • Contactless Payments: Tap-to-pay transactions are processed efficiently and may carry slightly lower fees compared to traditional swipe methods.
  • Recurring Payments: Payments for subscriptions or recurring charges often qualify for special interchange rates due to lower risk.

B. Why Interchange Fees Vary


Interchange fees are not static and can change due to:

  • Regulatory Changes: Some regions impose caps or regulations on interchange fees (e.g., the EU caps interchange fees for debit and credit cards).
  • Card Network Updates: Visa, Mastercard, and other networks periodically update their fee structures based on market conditions and new technologies.
  • Market Conditions: High-risk industries or fluctuating exchange rates may lead to adjustments in fees.

6. Frequently Asked Questions (FAQs)


Q: What is included in the fees I pay for Stayntouch Pay?
A: Your fees include the interchange fee, scheme fees, and Adyen’s processing markup. These are transparently itemized in your reports.


Q: Are interchange fees the same for all transactions?
A: No, interchange fees vary based on the card type, transaction type, and other factors like whether the payment is domestic or cross-border.


Q: Where can I find a breakdown of my fees?
A: Log in to the Stayntouch Pay Essentials Portal to access detailed reports on your transactions and associated fees. The Settlement Details Report for each batch with break these out and on your monthly Statement you can see the total of these for the month broken out.


Your Statement

  • Summary Page: The statement page includes the summary of the previous month's transaction fees and commissions. The due amount may be positive or negative. In the payment instructions, you can find information on the follow-up steps you need to make to balance any existing differences. In either case, differences are rectified in the following settlement batch.
  • Detail Page: The detail page is the second page of your statement and it contains tables for calculated and already deducted amounts. The resulting amount in the bottom-right cell equals the statement total, VAT excluded. The deducted table on the statement contains the total charges already deducted from earlier settlements. These amounts are in the settlement reports as well, so you can verify the charges have been settled.

7. Learn More


For a deeper dive into credit card fees and how they work, visit these resources:

Support


If you have additional questions about credit card fees or need assistance, please contact Customer Support.

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